Browsing the blog archives for May, 2009.

Foreclosures Continue to Mount.

florida, Foreclosures, hernando, mortgage, REAL ESTATE, short sell

As expected the foreclosure rate increased to another record. However there is an interesting twist this quarter, the biggest share of the increase came from Prime borrowers.

From Bloomberg: Mortgage Delinquencies, Foreclosures Hit Records on Job Cuts

The inventory of new and old defaults rose to 3.85 percent, the MBA said today. Prime fixed-rate mortgages given to the most creditworthy borrowers accounted for the biggest share of new foreclosures at 29 percent, and prime adjustable-rate mortgages were 24 percent, Brinkmann said. It shows the mortgage problem has shifted from a subprime issue to a job-loss problem, he said.

This will certainly add to the complications of buying a home, as the 30-year loan rose .09% this week and banks will likely impose more strict lending standards, since the foreclosures are now shifting towards prime borrowers.

With only 6 months left until the First Time Home Buyers Tax Credit expires, it is quite possible it may take several months to close on a home. For those looking to take advantage of the tax credit; you may only have a few months left to find a home, in order compete the closing by the end of the year and qualify for the tax credit. With a tight time line, buyers should be aware do not use prior (2005-2006) home values as a reason to over bid. The key to taking advantage of the current housing crisis is to submit offers that incorporate the current market conditions.

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